The growth is driven by internal and external
security threats, territorial disputes, and modernization initiatives
undertaken by armed forces across the world. Opportunities are abundant
for manufacturers in the market, as the global defense industry is
investing significantly in R&D to enhance the speed, accuracy,
destructive powers, and stealth capabilities of ballistic missiles.
However, growth of the global ballistic missile market could be affected
by the declining defense budget by developed nations and stringent
technology-sharing rules.

North America is expected to have
the largest market share during the forecast period, followed by
Asia-Pacific. One of the key factors driving the North American
ballistic missile market is the continuous demand from the US military,
owing to engagement in various global conflicts. China is investing
heavily in ballistic missile-related technologies to deter incursions
into the Chinese territory, by both aircraft and potential long-range
strike weapons.

Ballistic missile developments in North Korea
also act as a key missile procurement driver for Japan and South Korea.
India has undertaken a Ballistic Missile Defence Programme to develop
and deploy a multi-layered ballistic missile defense system to protect
from rising ballistic missile threats from China and Pakistan. Europe's
share of the global market is expected to decrease, owing to the
economic crisis, Brexit and resulting budget cuts in many European
Nations.